Procurement orchestration isn't just a tool; it's a strategic advantage, helping organizations create a resilient framework ready to adapt to tomorrow's challenges.
Procurement teams operate in a world of constant transactions, shifting priorities, and ever-changing deadlines. But how often do they actually see what's happening across the board?
Despite growing digital advances, procurement still deals with significant visibility challenges, especially when processes are fragmented or hidden within outdated "shadow" systems like emails or spreadsheets. Imagine navigating with only a flashlight -- spotting risks and opportunities in isolated fragments of light.
The biggest threat to effective procurement processes isn't just missing data. It's the "blind spots" that traditional processes create. With 65% of procurement leaders reporting limited or no visibility beyond tier-one suppliers, this isn't just frustrating -- it's a risk to compliance, cost savings and resilience.
To tackle these procurement blind spots, leaders need more than just isolated technology updates and fixes. Procurement teams need a smarter, connected approach that shines a full light on every step, supplier and dollar spent. Here's where GenAI and procurement orchestration come together to tackle procurement's visibility challenges.
In almost every organization, workflows across multiple channels, some of which aren't captured by centralized systems. Even when an organization uses manual tracking to stay on top of workflows, it's often inconsistent and siloed, which only reinforces hidden pockets of inefficiency and missed opportunities. Manual processes and shadow systems make tracking processes complex. For example, inter-departmental purchases might get buried in a string of emails or isolated in Excel, where visibility is restricted to only those directly involved. Without a clear view of such tasks, organizations struggle to improve process efficiency or ensure compliance.
The reality is, that people are simply too busy to stay on top of manually tracking their work. Self-reporting is onerous and becomes especially hard when processes are neither linear nor consistent. These blind spots lead to unclear process steps, communication gaps, and ultimately, delays in fulfilling a procurement team's goals. To truly understand and manage every step, procurement needs orchestration -- bringing all processes into one unified, transparent workflow.
According to recent studies, 94% of procurement professionals feel overwhelmed by the number of tools they use daily, with 45% spending more than 11 hours each week simply tracking down procurement-related information. With teams navigating a patchwork of systems, they often can't access the insights they need to identify bottlenecks or anticipate delays.
Even in highly digitalized environments, data visibility suffers without proper integration. Disconnected systems create blind spots that limit visibility, making it difficult to see the big picture. This is especially problematic as 50-70% of operational costs stem from the supply chain, meaning even small inefficiencies can have a significant financial impact. Data warehousing and static visualizations fall short here because they only capture isolated data snapshots, not dynamic processes. What organizations need is integrated visibility -- where every step in procurement is connected, from vendor selection to final approvals, creating a seamless view that enables timely decision-making.
Where data is siloed, people lack the context necessary for decision-making. Where context is lacking, decisions are either poorly informed or significant amounts of back and forth are required to find and make sense of contextual information in a way that significantly increases cycle times.
A lack of integration results in bottlenecks when a simple issue in one department holds up the entire procurement process. Procurement orchestration tools that integrate with legacy systems ensure each step in the process feeds into the next, eliminating delays and creating a unified operational picture.
Once data is centralized, organizations face another issue: information overload. Sorting through endless data points becomes a dreadfully manual and massive undertaking. GenAI offers a breakthrough here, capable of rapidly organizing and analyzing data from end to end. It doesn't just process data; it translates it into actionable insights. GenAI also identifies patterns and suggests optimal workflows, allowing procurement teams to navigate complex processes with clarity and speed.
With GenAI, procurement teams can quickly rationalize massive vendor datasets, updating and consolidating hundreds of thousands of records in a fraction of the time it would take manually. This technology transforms raw data into digestible, decision-ready information, allowing teams to react faster to market changes and minimize procurement delays.
With Gartner predicting 21.7% productivity gains over the next 12-18 months from GenAI in procurement, teams must act now to stay competitive. GenAI doesn't just process data; it enables teams to move quickly from insight to action.
Procurement orchestration bridges visibility gaps by unifying workflows, data, and collaboration into a single, transparent system. This streamlined approach allows teams to easily track progress, reduce inefficiencies and manage suppliers more effectively. Several key benefits of procurement orchestration include:
A centralized orchestration system streamlines all stages of procurement, from start to finish. This digitized process provides a holistic approach to increase visibility at all stages and eliminate manual processes throughout. By creating a transparent, collaborative workspace, orchestration tools empower procurement and related teams to track progress in real-time, reducing time wasted searching for information and avoiding miscommunication. This includes visibility into collaboration steps in email communication and also platforms like Slack, Teams, etc, eliminating the need for work to happen outside of a digitized, centralized process.
Integration with existing legacy systems, source-to-pay (S2P) suites, best-of-breed tools and homegrown systems ensures that orchestration tools provide a complete view of every procurement process. This doesn't just modernize the workflow; it brings multiple departments into alignment, allowing the entire organization to operate as a cohesive unit.
How does orchestration help organizations avoid the perils related to a lack of contextual information (i.e. poor and/or slow decisions)? It ensures that information from all relevant systems is immediately available at the point of decision, within a single pane of glass. For example, when a business user submits a purchase order for approval, the approver should be able to see relevant contract and budget details without having to hunt for them or play email tag. When someone is asked to perform a risk assessment, they should have access to existing risk assessments and other risk indicators. Or when a business user is asked to select a preferred supplier, they should be able to see a complete vendor profile, including how they have been used in the past and any known risks.
GenAI enables a data-driven approach, interpreting vast amounts of data to reveal procurement patterns, identify opportunities and streamline workflows. Process mining techniques further enhance this by illuminating potential inefficiencies and optimizing every step.